Case Law Details
Delhi High Court held In the case of CIT vs. Sudhir Budhraja that the findings of the Tribunal are based on sufficient material and cannot be stated to be perverse. On the other hand that the AO had no material or had not collected any evidence to reject the claim made by the Assessee. Apart from doubting and questioning the material produced by the Assessee, the AO had not produced any positive evidence which could lead to the inference that the amount received by the Assessee was not gift. High Court has has held that Insofar as the failure on the part of the donor to provide his business details, details of his assets, bank accounts and his agreements with his associates and other information is concerned; clearly, a donor could not be expected to share such details, which understandably may be considered as confidential.
Facts of the Case
The Assessee is a Chartered Accountant. The Assessee filed a return of income for the AY 1995-96 on 31st October, 1995 indicating gross professional receipts of Rs.18,95,901/- out of which Rs.18,05,400/- was received as consultancy fees from a US based company – M/s Blackfin Development Company Inc., USA (Blackfin). In addition the Assessee had also received US$ 6,00,000/- from Blackfin. It was the Assessee’s case that Blackfin had remitted the amount at the instance of Sh. Jaspal and it was a gift from him.
During the assessment proceedings on 3rd March, 1997, the donor appeared before the AO and was examined on oath. The donor affirmed that he and the Assessee had been close friends since 1971 and the remittance made was as a gift from him out of love and affection for the Assessee. He also stated that he had a business turnover of US$ 3-4 million. The Assessee was also examined on oath on 14th March, 1997 and 28th May, 1997. Thereafter, the Income Tax Authorities conducted a survey under Section 133A on the Assessee’s business premises and a questionnaire was issued to the donor. The donor replied the said questionnaire stating that he has already offered all explanations including his capacity and capability to make the gift and also the source of the gift. The Assessee was called upon to produce the agreement with Blackfin pursuant to which the Assessee had been engaged to provide consultancy services. The assessee produced the same
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